Introduction
Businesses are meant to earn economic profit and to expand comprehensively. It is more than important for a business to keep their expansionary level high and effective in order to become economically prosper and strategically active, as well. Businesses are of two different kinds, which are Small business and large businesses. Small businesses are those businesses which have certain recognition in a given city or area, while large businesses have extensive roots in different parts of the country.
In the current economic situation and outlook, wherein every another person is cursing and accusing their job the mindset towards opening businesses are also crippling, that may be sounds interesting for an economy and especially for that economy that has recently encountered a severe recession. Small Business sector establishment and initiation is also increasing in the United States as well, which recently grew up from a severe financial crunch (Johan Strydon, p.34). The main perspective of this assignment is to make a franchise plan for UPS Store in America. There are different facets that have to be completed in this assignment.
Analytical Framework
The United States of America (USA), commonly known as America is a federal republic comprises on 50 states. It is recognized as a developed country with largest economy of the world. The Gross Domestic Product (GDP) of USA is $ 16.724 trillion in the year 2013 with per capita income of $ 52,839. It is a politically safe and economically sound country of the world that is why more and more people would like to have their own business in this particular country.
American economy recently leaped out from a severe recession, in which 100s of the financial institutions of the country went bankrupt, and thousands of people went unemployed. Small Business had not effect from the current economic crisis, and the businesses are still in a good competitive position to increase their financial belongings (Singla, p.112). Franchising business is yet another important business that comes under the umbrella of Small Business, and it has its own importance and recognition in a broad nutshell.
It is required to have the franchise of the UPS store, which lies in top 500 franchises list of the United States. Companies may get certainly added advantage due to high profit potential with the franchising of this particular store. The network of the UPS Store is the world’s largest and it acts as a franchisor of retaining based shipping, printing, postal and business service center.
Entrepreneurship
Our Goal is to set up a new franchise of the UPS Store in America. The main benefit of franchising business is that the franchisee would get the recognized name and brand from the franchisor that would certainly affect the financial and strategic position of the franchisee. By having a franchise of a big company, generating high net revenue and accomplishment of growth would certainly become possible for them, and it is equally become positive and effective for us as well (Nickels, p.54). The business is created by getting a Franchising license from Security and Commission (SEC) of the US with draft of Department of Justice (DOJ). The main advantage of having parent business franchising is high growth potential, but the biggest disadvantage is that the customer would expect high.
Marketing
The role of marketing is important from the viewpoint of every organization, and it is equally beneficial for Franchising as well in order to get the people aware with the franchise and its parent company. The marketing strategy which should be taken into account by us in the initial years of operations would be Penetration in the local region. This strategy would be perfect for the consumers, because it would give the opportunity to the consumers to have the services of the company in return of minimal fees. The advertisement fee would have to be arrange by the management
Operational Management
Supply Chain is an important provision in our franchising, and we have to establish a perfect and well organized supply chain and logistics functions in order to manage the operations effectively and accordingly (Hall, p.71). The procurement process for the parent company lies on their suppliers, and we will emphasize on our own suppliers in particular in order to keep the operations of the company running effectively.
Costing
Costing is an important provision from the viewpoint of the organization and no organization can have effective and certain economic advantage without managing their cost accordingly. The startup cost would be like this
The breakeven point of sales lies on the sales of 5,000 $ per month, as this is the minimum amount of revenue which we have to made to reach on break even.
Human Resources
Human Capital is the backbone of an organization, and it is equally beneficial for us, as well. We will hire the best talent in the market with effective and transparent hiring process, and every employee would train accordingly to become effective and dedicated for the company, and in return we would give competitive salaries to them.
Staffing & Training
Staffing and training are some of the major provisions from the standpoint of Human Resources (HR) department. Staffing means hiring and recruiting of employees in an effective and well organized manner
The requirement of training is also extremely essential in a franchise as well and we will provide corporate training to our employees in order to get the things right at the right time. The main advantage of the corporate training is that we can deliver the basics to our employees comprehensively while the biggest disadvantage of the same is that this particular corporate training would be very costly.
Summary Conclusion
The franchising business would certainly grow in the region of America, as the economy has now leapt out completely from the severe recession, and now it has the power to absorb different businesses and other opportunities in it.
Works Cited
Hall, Richard E. Starting a Small Business. Dallas: Infinity Publishing, 2003.
Johan Strydon, Alex Antonites, Andreas de Beer. Entrepreneurship & How to Establish Your Own Business. New York: Juta and Company Ltd, 2008.
Nickels, William G., McHugh, James, and McHugh, Susan. Understanding Business, 10th Edition. Boston: McGraw Hill, 2012.
Singla, Dr. RK. Business Organisation and Management. London: FK Publications, 2010.
